Blog
February 23rd, 2012

Can you afford to replace your home?

by

 

When you’re considering how much home insurance is adequate to cover your home, is it best to consider how much your home is worth or how much it would cost to replace? The experts at Insure.com say it’s absolutely the latter.

Given the state of home prices in this country, the costs to rebuild your home can far outweigh what your home might sell for on the current market.

“Too often, homeowners don’t learn they’re underinsured until after a catastrophe, when the payout from the insurance company isn’t nearly enough to rebuild the home,” wrote Mila Maxwell of Insure.com.

Insure.com recommends homeowners find out just how much it would cost to rebuild their homes. Insure examined two online tools that do just that, but you’ll have to read their article to learn more about their results: “How much would it cost to replace your home? We test two online estimator services.

“Two-thirds of homeowners are underinsured,” said Amy Bach, executive director of United Policyholders, an insurance consumer advocacy group based in San Francisco. A recent report even revealed that many homeowners are underinsured by a few hundred thousand dollars.

Why am I underinsured?

Your home can be underinsured for any number of reasons, including:

  1. You never gave your home insurance much thought beyond keeping up with the monthly payments
  2. You’ve never found out what your rebuilding costs might be
  3. You failed to contact your insurance company after you made certain home improvements or renovations
  4. Construction costs have risen
  5. Your  policy may never have been adequate from the start

To learn more about how you can review your home’s insurance policy and rebuilding costs, as well as how to add to and improve upon your current policy, be sure to continue reading, “How much would it cost to replace your home? We test two online estimator services.

Share and Enjoy:
  • email
  • Print
  • RSS
  • Add to favorites
  • Yahoo! Bookmarks
  • Facebook
  • Twitter
  • Technorati
  • Digg
  • del.icio.us
  • Google Bookmarks
  • StumbleUpon
  • Yahoo! Buzz
  • Mixx
  • BlinkList
  • Live
  • Reddit

2 Responses to “Can you afford to replace your home?”

  1. Best Money Tips: Saving for Your Child’s College Fund | Marketing Says: March 2nd, 2012 at 11:10 am

    [...] Can you afford to replace your home? — You might not be able to afford replacing your home due to the fact that construction costs have risne. [HSH.com] Frugal Fixes for Furniture — Fix your ruined pots and pans by using water softener. [Being Frugal] [...]

  2. Mitch Mitchell Says: March 2nd, 2012 at 11:21 pm

    Actually, I never knew you had a choice in the matter. At least here in NY I didn’t have a choice. Maybe it was because I was a first time homeowner but they told me what was covered and how much it would cost us and that was that. The things I learn. :-)

Leave a Comment

Receive Updates via Email

Delivered by FeedBurner

About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

Our bloggers:

Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

Connect With Us

  • rss feed icon
  • facebook icon
  • twitter icon

Compare Lowest Mortgage Rates

$